Om Freight Forwarders IPO: A Comprehensive Overview
Om Freight Forwarders Ltd.’s initial public offering (IPO) has opened for subscription, and the response has been overwhelming. On the second day of bidding, the issue was subscribed 2.23 times, with non-institutional investors leading the charge. In this article, we will delve into the details of the IPO, including its price band, lot size, and tentative listing date.
IPO Details: Price Band, Lot Size, and Listing Date
The Rs 122.31-crore IPO is a book-built issue that comprises a fresh issue of 18 lakh shares to raise Rs 24.44 crore and an offer-for-sale component of 73 lakh shares worth Rs 97.88 crore. The IPO’s price band has been set between Rs 128 and Rs 135 per share.
The lot size for retail investors is 111 shares, requiring a minimum investment of Rs 14,985. For SNIIs, the lot size is 14 lots, or 1,554 shares, requiring Rs 2,09,790, while BNIIs can apply for 67 lots, or 7,437 shares, amounting to Rs 10,03,995.
Tentative Timeline: Allotment, Refund, and Listing
The IPO is scheduled to close on October 3, with the tentative allotment expected on October 6. Refunds to unsuccessful applicants are likely to begin on October 7, the same day the shares are expected to be credited to successful investors’ Demat accounts.
The IPO is tentatively set to list on the BSE and NSE on October 8. Smart Horizon Capital Advisors Pvt. Ltd. is the book-running lead manager for the IPO, while Bigshare Services Pvt. Ltd. has been appointed as the registrar of the issue.
Company Profile: Om Freight Forwarders Ltd.
Om Freight Forwarders Ltd. is a Mumbai-based logistics firm with over 40 years of experience. The company has expanded its operations across five continents, reaching over 700 locations worldwide. Om Freight Forwarders focuses on technology-driven solutions, providing paper-free documentation, GPS tracking, and real-time shipment monitoring.
The company’s services span international freight forwarding, customs clearance, vessel agency operations, transportation, warehousing, and distribution. With a strong presence in the logistics sector, Om Freight Forwarders is well-positioned to capitalize on the growing demand for efficient and reliable logistics services.
Funding Plans: Utilization of IPO Proceeds
The company plans to utilize the net proceeds from its IPO primarily to fund capital expenditure, including the acquisition of commercial vehicles and heavy equipment. The remaining funds will be allocated for general corporate purposes.
Subscription Status: Day 2 Update
The Om Freight Forwarders IPO was subscribed 2.23 times as of 5:00 p.m. on Tuesday. The subscription status is as follows:
- Qualified institutional buyers (QIB): 3.95 times
- Non-Institutional investors (NII): 4.70 times
- Retail investors: 0.91 times or 91%
- Employee reserved: 0.25 times or 25%
Grey Market Premium: Latest Update
The latest grey market premium of Om Freight Forwarders is Rs 5 as of 7:36 p.m. according to Investorgain.com. The stock’s estimated listing price, as per the GMP, is Rs 140. This implies a potential gain of 3.70% over the IPO price of Rs 135.
Note: GMP does not represent official data and is based on speculation. GMP data sourced from InvestorGain.
Conclusion: Should You Invest in Om Freight Forwarders IPO?
The Om Freight Forwarders IPO has garnered significant interest, with the issue being subscribed 2.23 times on the second day of bidding. With a strong company profile, robust funding plans, and a growing demand for logistics services, Om Freight Forwarders is an attractive investment opportunity.
However, it is essential to conduct thorough research and analyze the company’s financials, industry trends, and growth prospects before making an investment decision. As with any IPO, there are risks involved, and investors should carefully evaluate their investment goals and risk tolerance before applying.
